Trust in the City is central to its ability to create jobs and foster growth July 8, 2012 OUR SUCCESS as a global financial centre depends on trust. Recent events have shaken that trust, and we must restore it. It is the responsibility of us all to make the case for the importance of the City to both the British economy and to other economies abroad, both now and in the future. It [...]
Have recent events shown that relationships between banks and regulators are too close? July 8, 2012 YES Steven Woolfe “Without banking Britain is bust,” a taxi driver recently told me. He is right. A competitive, free, financial market is vital to our country’s well-being. Any regulation imposed should be applied equally to all market participants. What the Libor scandal has shown is that the too big to fail principle has created [...]
RAPID responses July 8, 2012 Cheapened money [Re: Why QE is not the answer to Britain’s economic problems, Friday] Quantitative easing is a disaster. Milton Friedman wouldn’t have supported this further injection if he were still alive, and he’d be right – as he was about most things. He predicted the euro would have about a 10 year lifespan. It [...]
Questions the Treasury Committee should ask Paul Tucker on Monday July 5, 2012 IT WILL be on strictly surname-terms that Paul Tucker, deputy governor of the Bank of England, faces his interrogators on the Treasury Committee on Monday. Tucker, unlike Bob Diamond, has plenty of experience of dealing with the Committee’s MPs and knows when to defer to them. But he cannot expect an easy ride – there [...]
The fall of Bob Diamond: How tragedy can stalk even the most powerful July 5, 2012 FOR God’s sake, let us sit upon the ground, and tell sad stories of the death of kings.” Anyone who caught the BBC’s dramatisation of William Shakespeare’s Richard II at the weekend will have seen not only one of the City’s historic buildings featuring prominently – St Bartholomew the Great in Smithfield – but also [...]
The Wolfson Prize winner sets out a plan for euro exit July 5, 2012 THE simple fact is that Eurozone policymakers are still not doing enough to deal with the root causes of the crisis. Peripheral economies are fundamentally uncompetitive inside the currency union and will be unable to return to solid economic growth and fiscal health without exiting. Some form of Eurozone break-up remains likely. As we, at [...]
Is the Bank of England right to increase quantitative easing by a further £50bn? July 5, 2012 YES George Buckley The UK’s recovery continues to disappoint. So much so that we are back in recession, with output having contracted since last autumn. Among the G7, only Italy has seen a weaker recovery. With that in mind, the Bank of England needed to act this month, and act it did – its £50bn [...]
RAPID RESPONSES July 5, 2012 Political animals [Re: Pity Osborne isn’t this passionate when talking about growth, yesterday] George Osborne is treating this scandal as a political game, and most of the coalition is following him. There may be evidence of over-close contact between politicians and bankers, but that contact crosses the spectrum – it is, in fact, structural. Jamie [...]
Trust has lost all of its value in our state-regulated financial markets July 4, 2012 THE spotlight in the Libor rate-fixing scandal has moved. Questions are being asked about the culpability of the FSA, which may well have ignored repeated warnings about Libor calculations from market participants. The role of the Bank of England and the Treasury is also being questioned. Of course, regulators are not to blame for the [...]
Obama’s healthcare victory could prove a poisoned chalice in November July 4, 2012 FOLLOWING the ratification of the US Constitution, Benjamin Franklin quipped that “in this world, nothing can be said to be certain, except death and taxes.” Due to the creative jurisprudence of Chief Justice of the Supreme Court John Roberts, President Barack Obama can be thankful that the death of his health care reforms has been [...]